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Thread: Tesco vs. Tops

  1. #1
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    Tesco vs. Tops

    Sometimes I just don't get it. Maybe I am not that smart. By why do some Thai business people do this?

    Tesco has been here in the 'mooban' for the last couple of years, Now Tops has bought out a whole slew of Mom and Pop vendors to include my Muslim friend chicken lady; only to setup up shop basically next door to Tesco another 24-hour vendor.

    Then again I do not have the money to open up either store so I do not have the business savvy they do, but it sure boggles my mind at times...


    Last edited by hillbilly; 22-05-2011 at 03:25 PM.

  2. #2
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    Yep - it's almost psychotic behaviour, in my opinion. My town has two sign making shops - literally located next to one another. The only explanation is they are in cahoots.

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    Not in cahoots, in competition. Before Tesco had 100% of the business. Now Tops Daily knows since Tesco is already making money they can take away a percentage of Tesco's customers. What remains to be seen is there enough business for both stores to survive? Tops knows they will get some customers no matter what

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    Throw in 7/11 and Family Mart and we have a right war!! Pity there isnt shit to really snack on in any of them.

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    I think the Thai reasoning behind this is that it's hot and they don't want to walk miles for a price comparison. Thai businesses understand this and do their best to accommodate them

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    Used to be the same with language schools. Soon as EEC opened a branch away from the city center, Siam computer would open a branch nearby.

    But Chinatown really takes the biscuit. Go to one area and there'll be nothing but business' selling engine parts. The next area may only have printing business', another only car stereos etc. It's probably as Orroz says.

    I think the Thai reasoning behind this is that it's hot and they don't want to walk miles for a price comparison. Thai businesses understand this and do their best to accommodate them

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    freedom of choice is a wonderful thing, as long as you like at least one of the possibilities

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    Quote Originally Posted by Gazza
    But Chinatown really takes the biscuit. Go to one area and there'll be nothing but business' selling engine parts. The next area may only have printing business', another only car stereos etc.
    Here's my wifes take on same product in each street thing (not the mini mart thing).

    A few years ago she wanted to open up a mobile phone shop, so I asked her where she wanted to open it.

    "Probably on the the 4th floor of MBK" She said

    "But there's loads of Mobile phone shops there, why don't you think about somewhere else? Maybe one of the other shopping centers?" I replied

    "Because nobody would come!" she said "Everybody knows if you want a mobile phone you go to the 4th floor of MBK" Looking at me like I was stupid

  9. #9
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    The consumer will be the winner while the two stores cut prices on lost leaders to get the customers in, and having them next door makes it easy to buy your rice here and the apples there etc etc etc

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    Perhaps most available parking spots are on the Tops side.

    No Thai is going to walk 3 meters more than need be. Hence anyone who can't park outside, due to a street of double parked pick-up trucks etc, will go to Tops.

    Good business move.

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    Thai mentality I suppose.

    Wow, that stall alone at the roadside in the absolute middle of nowhere selling bananas has been there for at least a year now. Tell you what, I'm gonna open a stall right next to it and I'm gonna sell bananas too.

    Throw in 7/11 and Family Mart and we have a right war!! Pity there isnt shit to really snack on in any of them.
    Of course there is: Crisps, nuts, toasties, bakery pieces, sandwiches, cold meats, hot dogs, burgers, chicken, ice creams, sweets, popcorn, noodles, yoghurts, fruits...

    In fact, it's mostly snacks!

    And that's just 7/11, available EVERYWHERE and normally within 20m of a pharmacy for some reason.
    Lang may yer lum reek...

  12. #12
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    They benefit from taking over part of the existing customer base, rather than building your own in a new area (if there exists an unsaturated, yet busy area -- usually not the case).

    The exact benefit does depend on the type of business. In case of a small walk-up convenience store, it's somewhat weak -- it's good to be, conveniently located. A 7-11 50m closer to my home wins every time. For selling larger one-time items (such as a mobile phone or car tires) or wholesale, the effect is far stronger.

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    Its not just a Thai Thing.... I remember doing a case study years ago on MC Donalds and Burger King in the USA.

    In the case study it said that Burger King did not have any department in charge of studying local demographics of an area to determine whether or not could support a new Burger King (although Mc Donald's did).

    Burger King had determined that any location that Mc Donald's team had vetted could in fact support two Burger Joints. So their policy was that a Burger King Branch could be built next to any location that had a Mc Donald's.

    This is why it is very common in the US to see Burger King's and Mc Donalds very close to each other.

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    lol, they just done the same my soi, a Tops opened about 3 months, and just yesterday they put up the signage on the Tesco express that is pretty must directly across the soi.

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    ^ What he said.

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    Store Locations

    It makes perfect sense to many Thais...and in a way I agree...to locate your store next to a competitor 's store.
    If someone goes, to that store...and doesn't find what he or she wants...he or she is likely to check next door...to see if your store next door DOES have what they are looking for.
    For the shopper, if the store next door does have what you want, you're already there to buy it...so it "saved" you a trip.
    I don't think that's only a Thai way of thought, though.

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    It's not Thai mentality.

    It's Asian business mentality. Starts at the Bosporus and ends in Yokohama or something.

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    In the states you usually find all of the fast food joints fairly close to each other in a town. Not always but usually.

    Now having said that Tesco and Tops ain't usually considered fast food places. I think it boils down to more of a budget shopper vs. a 'let's just get her down' type of mentality.

    Personally, I do not walk far for a savings of three baht...

  19. #19
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    Let's take another look at shopping. One can often see a Chevy dealer, a Ford dealer on the opposite side of town and a Honda dealership somewhere else. Please keep in mind that this in the states.

    Why? Get the customer in the door and most are not likely to venture elsewhere to spend their dollars. Once again not always but usually.

    Business strategies I guess...

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    Quote Originally Posted by hillbilly View Post
    In the states you usually find all of the fast food joints fairly close to each other in a town. Not always but usually.

    Now having said that Tesco and Tops ain't usually considered fast food places. I think it boils down to more of a budget shopper vs. a 'let's just get her down' type of mentality.

    Personally, I do not walk far for a savings of three baht...
    Not you, but the locals.

  21. #21
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    Quote Originally Posted by hillbilly View Post
    Let's take another look at shopping. One can often see a Chevy dealer, a Ford dealer on the opposite side of town and a Honda dealership somewhere else. Please keep in mind that this in the states.

    Why? Get the customer in the door and most are not likely to venture elsewhere to spend their dollars. Once again not always but usually.

    Business strategies I guess...
    In Australia much the same thing, car dealerships, in one area, motorcycle dealers in some other, but all together,

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    Quote Originally Posted by peterpan View Post
    Quote Originally Posted by hillbilly View Post
    Let's take another look at shopping. One can often see a Chevy dealer, a Ford dealer on the opposite side of town and a Honda dealership somewhere else. Please keep in mind that this in the states.

    Why? Get the customer in the door and most are not likely to venture elsewhere to spend their dollars. Once again not always but usually.

    Business strategies I guess...
    In Australia much the same thing, car dealerships, in one area, motorcycle dealers in some other, but all together,
    In lots of places in Europe too.

    Just look at London. Books and Theatres all in more or less one spot. Newspapers, doctors, too. Though that changed a couple of decades ago because of rents.

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    Days Work Done! Norton's Avatar
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    Quote Originally Posted by peterpan
    In Australia much the same thing, car dealerships, in one area, motorcycle dealers in some other, but all together,
    Actually makes sense. Yes they are all competing but if collocated gives the shopper a chance to see and purchase another brand they may not have considered. Carried to the extreme look at a large department store. Levis, Wrangler, et al in the same building but each has it's own wee space.
    "Whenever you find yourself on the side of the majority, it is time to pause and reflect,"

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    Quote Originally Posted by Norton
    Carried to the extreme look at a large department store. Levis, Wrangler, et al in the same building but each has it's own wee space.
    Zoning

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    Quote Originally Posted by The Fresh Prince View Post
    Quote Originally Posted by Gazza
    But Chinatown really takes the biscuit. Go to one area and there'll be nothing but business' selling engine parts. The next area may only have printing business', another only car stereos etc.
    Here's my wifes take on same product in each street thing (not the mini mart thing).

    A few years ago she wanted to open up a mobile phone shop, so I asked her where she wanted to open it.

    "Probably on the the 4th floor of MBK" She said

    "But there's loads of Mobile phone shops there, why don't you think about somewhere else? Maybe one of the other shopping centers?" I replied

    "Because nobody would come!" she said "Everybody knows if you want a mobile phone you go to the 4th floor of MBK" Looking at me like I was stupid
    Actually indeed your wife has more business sense than you.
    I read a study years ago that you get more customers that way.

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